10 Essential Money Tips For Anyone Traveling Abroad

In preparation for what I've lovingly dubbed my "Eat, Pray, Freak
the Eff Out That I'm Turning 30" jaunt to Europe next month,
I've started gathering information on what money matters to
expect while abroad.

To answer my burning questions, I tapped Ed Perkins, contributing
editor at SmarterTravel.com. Read on as we break down what
every globe-trekker should do before and after stamping her
passport:

First things first, tell your bank you're skipping
town. The last thing you want is your bank freezing your
credit (to protect against ID theft) when you're just
about to crash at your hotel. "Call your bank immediately and
load their international number onto your phone," says Perkins.
"All the banks that issue credit and debit cards have a toll-free
number you can call overseas to report the loss immediately."

Find out what the bank does in case of
emergency. Once I called my debit card issuer, I found
out it'd take 3-4 days to receive a new card (!!!). Now, I'm
definitely bringing a backup.

Avoid changing currency at US airports. "The
exchange rates are usually pretty bad," warns Perkins.

Once you land, get cash at an airport ATM. In
case I lose my wallet or the bank accidentally freezes my cards,
I'll need enough cash to get by for a day or so, says Perkins.
Make the most of an ATM's foreign transaction fee by taking out a
reasonable amount, like 200 euros, he suggests. Check your card
issuer's website to locate a terminal where you're going.

Prepare for smart card debacles. Almost all
European credit cards use smart card technology, says Perkins, but
since US cards have been slow to catch up, you may find yourself
arguing with a merchant over whether he'll accept your card.
Don't stress: If the merchant takes Visa or
MasterCard,
he's obligated to swipe your old school card with the magnetic
stripe. The real thing to watch out for are ticket machines at
train stations. You may be forced to wait in line for a booth
operator to process payment.

Pay with credit at hotels and restaurants. "It's
better to use a credit card," says Perkins, adding that you'll
lose no more than 3 percent, which your issuer will charge on the
deal. If you're with Capital
One, you're lucky—the issuer doesn't charge foreign transaction fees.

Insist on being billed in foreign currency.
"Never let the merchant bill you in dollars," warns Perkins.
"What happens is they'll decide on whatever exchange rate they
want, and they'll often use a bad one." Even worse, your bank
will still treat it as a foreign transaction since it originated
outside the U.S., even if it's in U.S. dollars.

Practice safe ATM and debit card swipeage. You
wouldn't dare stick your debit card into a standalone or
card-skimming ATM in the states, so keep the same mindset
when traveling abroad. Avoid shady machines on the street, and
always take out cash from a bank-affiliated ATM to be safe. As
for those public Wi-Fi locations and Internet cafes? Forget about
it.

Skip the traveler's checks. Contrary to my
father's advice, this is not a must-have when venturing abroad
(and hasn't been for twenty years or so). "If you already have
them, use them up, but the exchange rate isn't as good, to say
nothing of the fact that a lot of foreign banks and merchants are
no longer interested in dealing with them," notes Perkins. They
also have lousy exchange rates. With traveler's checks you'll
usually pay between 3 and 6 percent, much more than the 3 percent
you typically lose with plastic.

Don't convert excess currency into cash. "At the
end of the trip, you don't want excess currency," warns Perkins,
before adding that you'll pay a bigger fee to convert the money
back into dollars. Budget how to spend them, or better yet, save
them for your next adventure.